When a good is both rivalrous and nonexcludable the:
A) free rider problem may arise.
B) tragedy of the commons may arise.
C) good is likely a private good.
D) good is likely an artificially scarce good.

Question

Quizplus · Accepted Answer

When a good is both rivalrous (meaning its use by one person reduces its availability for others) and nonexcludable (meaning it is not possible to prevent others from using it), the tragedy of the commons may arise. This occurs when individuals consume the resource without considering the cost to the overall group, leading to overuse and depletion of the resource.

When a Good Is Both Rivalrous and Nonexcludable The